Does it have the opposite effect?
Germany could suffer if the European Union soon imposes additional import duties on electric cars made in China. German transport minister Volker Wissing warns about this.
The European Commission last month announced an investigation into alleged subsidies provided by the Chinese government to Chinese electric car manufacturers such as BYD. The investigation is expected to last approximately one year. This also involves BMW and other Western carmakers that make cars in China and ship them to Europe. This investigation could lead to Brussels imposing additional import duties.
Such a protectionist measure carries the risk of retaliation, fears German transport minister Volker Wissing. Opposite Bloomberg he states: ‘The German economy depends on open markets. We must guarantee a level playing field, but not work with subsidies or taxes.’ It could hurt companies like BMW, Volkswagen and Mercedes-Benz, all of which consider China their most important internal market. For example, the Mercedes S-Class is the best-selling luxury car in the country.
Ola Källenius, CEO of Mercedes-Benz, also recently opposed protective measures. According to him, open markets are the key to healthy competition. German Chancellor Olaf Scholz is also not in favor of it. According to him, it is up to the European car industry to keep or make cars more attractive than Chinese ones.
– Thanks for information from Autoweek.nl